Karnataka comes up with draft apartment law to mandate safety audits, streamline ownership

Bengaluru: Karnataka on Wednesday unveiled the draft Karnataka Apartment (Ownership and Management) Bill, 2026, proposing a comprehensive overhaul of apartment ownership and governance by replacing two five-decade-old laws that no longer align with the realities of urban housing.

Released by Chief Minister DK Shivakumar and Bengaluru Development Minister Krishna Byre Gowda, the draft legislation seeks to repeal the Karnataka Apartment Ownership Act, 1972 and the Karnataka Ownership Flats Act, 1972, consolidating the legal framework governing apartment ownership, transfer, management and redevelopment.

Also read: Karnataka proposes structural audits for ageing apartments under new ownership law


An important provision of the Bill mandates structural stability certification for apartment buildings once they complete 30 years, followed by mandatory certification every five years. The move aims to improve the safety of ageing apartment complexes amid rapid urbanisation.

The proposed law applies to apartment projects with more than eight units and brings enforcement under the Urban Development Department. It also clearly transfers ownership of project land and common areas to apartment owners, while limiting residents' associations to management and maintenance responsibilities.

To address long-standing disputes, the Bill introduces a two-tier dispute resolution mechanism with appellate authorities vested with powers equivalent to civil courts. It also provides clarity on the calculation of undivided share (UDS), a recurring source of litigation between developers and homebuyers.

The legislation aligns several provisions with the Real Estate (Regulation and Development) Act (RERA), including the duties of promoters, rights of allottees and execution of transfer deeds. Developers will be required to facilitate the formation of an association of allottees within three months of more than 50% of apartments being booked.

The Bill also spells out the responsibilities of promoters, apartment owners and residents' associations. Promoters must hand over original project documents, transfer unpaid balances and maintain common areas until the association takes over. Apartment owners will be required to pay maintenance charges, avoid structural alterations that compromise safety and comply with association by-laws.

For older apartment projects where common areas have not been legally transferred, the Bill provides for deemed conveyance of land and common facilities. It also lays down a framework for redevelopment, requiring the consent of at least 75% of apartment owners, while non-consenting owners must receive compensation of at least twice the prevailing market value.

The draft legislation proposes the creation of a state-level consultation and advisory committee comprising representatives of apartment owners' associations and government officials. The government has invited public suggestions on the draft Bill before finalising the legislation.